Albemarle Corporation has entered into a cesium concentrate offtake agreement with Power Metals Corp., providing Albemarle with a C$5 million prepayment and the right to purchase up to C$5 million of cesium oxide concentrate from Power Metals’ Case Lake project, which is slated to reach production in 2026.
The deal fits into Albemarle’s broader strategy to diversify beyond lithium and strengthen its critical‑minerals portfolio. In addition to lithium, the company has significant operations in cobalt, nickel, and other battery‑grade materials, and it has recently secured a $90 million U.S. Department of Defense grant to expand domestic lithium production. By adding cesium—a rare‑earth element used in high‑performance electronics, aerospace, and defense—Albemarle is positioning itself to capture a niche but high‑value market while reinforcing North American supply chains.
Power Metals’ Case Lake project contains a maiden inferred resource of 13,000 tonnes at 2.4 % cesium oxide and is estimated to require less than C$8 million in capital. The C$5 million prepayment is contingent on the company obtaining the necessary permits and is intended to accelerate development toward the 2026 production target. Cesium is one of only two active global producers—Canada’s Tanco and Zimbabwe’s Bikita—making new supply sources strategically valuable; the market price for cesium carbonate is roughly US$219,000 per tonne, underscoring the element’s scarcity and high value.
Financially, Albemarle reported a gross profit margin of 12.39 % on $4.95 billion of revenue and maintains a healthy liquidity position with a current ratio of 2.27. The prepayment provides Power Metals with non‑dilutive funding, enabling the company to advance the Case Lake project without raising additional equity. For Power Metals, the agreement delivers a committed buyer and a clear path to revenue generation, potentially accelerating cash flow and supporting future expansion of its critical‑minerals portfolio.
Johnathan More, Chairman and Director of Power Metals, said the prepayment “provides access to funding without dilution, allowing us to advance Case Lake while preserving shareholder value.” Albemarle’s leadership has emphasized the importance of securing critical‑minerals supply chains; the company’s CEO highlighted that the cesium agreement “expands our specialty‑chemicals segment and creates new revenue streams while maintaining our core lithium business.”
The agreement strengthens North American cesium supply, a critical component for advanced technologies. By securing a near‑term offtake, Albemarle positions itself to meet growing demand from defense, aerospace, and high‑performance electronics, while Power Metals gains a strategic partner that can help bring the project to market faster and more efficiently.
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